DE 98-023
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
Interconnection Requirements for Residential Cogeneration
Qualifying Facilities
Order Approving Settlement Stipulation
O R D E R N O. 23,031
October 5, 1998
APPEARANCES: Catherine E. Shively, Esq. on behalf of
Public Service Company of New Hampshire; Pentti J. Aalto on
behalf of PJA Energy Systems Design; and Eugene F. Sullivan, Esq.
on behalf of the Staff of the New Hampshire Public Utilities
Commission.
In this order, the New Hampshire Public Utilities
Commission (Commission) approves a settlement which modifies the
interconnection requirements applicable to Public Service Company
of New Hampshire (PSNH) for Qualifying Facilities (QFs) up to 25
kilowatts. The approved Stipulation also resolves a dispute
between PSNH and Intelligen Systems Inc. (Intelligen) relative to
the interconnection of Intelligen's residential cogeneration
units to PSNH's distribution system.
I. PROCEDURAL HISTORY
The Commission initiated this proceeding on March 13,
1998 to investigate the policies governing the interconnection of
residential cogeneration units to PSNH's electric grid. The
investigation was also precipitated by a disagreement between
PSNH and Intelligen over the interconnection of Intelligen's
residential cogeneration units.
A duly noticed prehearing conference was held on April
16, 1998 during which the Commission granted intervention
requests by the following individuals or entities: Intelligen,
Chuck Stata and John Bachhuber. See Order No. 22,906 (April 28,
1998). On April 21, 1998, a late intervention request was filed
by PJA Systems Design (PJ Systems).
PSNH filed direct testimony on April 30, 1998.
On August 13, 1998, PSNH filed a Settlement Stipulation
(Stipulation) supported by all parties of record. PJ Systems is
not a party to the Stipulation, although it did not object to the
policies articulated therein as an interim approach until the
Commission reconsiders the interconnection guidelines applicable
to all electric utilities.
The Commission held a hearing to address the
Stipulation on August 18, 1998. During that hearing, PSNH
presented the testimony of Stephen Hall, S.B. Wicker, Jr. and
Russell Johnson.
II. THE STIPULATION
The Stipulation purports to resolve all outstanding
issues in this docket. Specifically, PSNH and the stipulating
parties propose to maintain the QF interconnection guidelines
established by the Commission in prior dockets except as noted in
the Stipulation. Below, we briefly summarize those proposed
exceptions, i.e., those provisions which would modify or amend
prior interconnection polices.
Insurance Coverage
Under the Stipulation, residential customers who
install generation up to 25 kw will be required to have $250,000
in liability insurance coverage. PSNH will not need to be named
as an insured under any such policy. Commercial customers must
carry coverage in the same amount, but must also name PSNH as an
insured.
Design Standard
The Stipulation provides that PSNH will continue to use
the "GE Flicker Curve" as a design standard for its distribution
system. Since merging with NU, PSNH has incorporated the
standard by applying the NU Distribution Design Standards; these
Standards generally prevent voltage fluctuations from exceeding
the GE Flicker Curve.
Determination of Local Effects
The Stipulation provides a series of procedures for
determining the "local effects" of QF installations. These
procedures require PSNH to utilize the GE Flicker Curve based on
an assumed frequency of motor starts per hour; however, customers
will be allowed to challenge this assumed frequency level. In
the event that PSNH and a customer are unable to agree on this
issue, the Stipulation provides that the matter will be referred
to the Commission Staff for resolution.
Effects on PSNH's Primary System
Under the Stipulation, if PSNH determines that a QF
unit will affect PSNH's primary system in a manner which violates
the GE Flicker Curve's Borderline of Visibility, the customer
will be responsible for all costs associated with eliminating
those effects unless the primary system does not meet the
Commission's rules pertaining to quality of electric service (Puc
304).
Customers Served By Dedicated Transformers
Customers who take dedicated service will be required
to pay all costs associated with upgrading facilities to meet the
above-described voltage flicker standards.
Multiple Customers Served By a Single Transformer
In cases where a customer seeks to interconnect a QF to
a transformer served by more than one customer, the Stipulation
provides that PSNH will determine whether an installation
violates the Flicker Curve's Borderline of Irritation at the
meter(s) of any other customer(s); if it violates that standard,
the customer installing the QF will be responsible for all costs
associated with reducing the impact to others to below the
"Borderline of Visibility." If PSNH determines that the
installation affects any other customer(s) served by the same
transformer in a manner that violates Borderline of Visibility
(at the meter), the customer installing the QF will be
responsible for 50% of the costs associated with reducing the
impact to such other customer(s) to a level below the Borderline
of Visibility.
Underground Distribution Service
Under the Stipulation, PSNH will evaluate QF
installations to underground distribution facilities in the same
manner as described above; cost-sharing will apply only to
changes to underground system transformers; and, customers will
be responsible for all costs associated with replacing and
upgrading underground facilities.
Customers Adding Load
According to the Stipulation, PSNH will utilize the GE
Flicker curve to determine whether to upgrade its facilities to
provide service to customers who add load. Any payment
obligation on the part of customers will be determined in
accordance with PSNH's Tariff.
III. COMMISSION ANALYSIS
The Stipulation sets forth reasonable standards and
guidelines for interconnecting residential QF units to PSNH's
system and, accordingly, we approve the Stipulation without
modification. We note, however, that it may be appropriate to
revisit the issues raised in this proceeding on a generic basis
as the State implements the restructuring policies articulated in
RSA 374-F. In that sense, we agree with PJA Systems that the
Stipulation offers an interim solution rather than a final
Commission policy. As such, we will continue to reevaluate the
interconnection policies applicable to PSNH or to the State's
other electric utilities as circumstances warrant.
Based upon the foregoing, it is hereby
ORDERED, that the Stipulation described in the body of
this order is APPROVED.
By order of the Public Utilities Commission of New
Hampshire this fifth day of October, 1998.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary